Canadian Inflation – Seals The Deal
CAD CPI exceeded forecasts as price pressures are spreading across the economy.
· Headline CPI came in at 5.1% (4.8% expected)
· Core was 3.3% (3.1% expected)
A rate hike on March 2nd should be a done deal, with the only unresolved question being whether the Bank of Canada raises the overnight rate by 25bps or 50bps.
We lean towards them starting with 25bps, however, we can not rule out a 50bps move.
